Theft can happen in any organization, but there’s help

Michael A. Goins, the former Pasco Downtown Development Authority director, is still awaiting sentencing after he admitted to embezzling money from the nonprofit agency.

How he reportedly stole at least $90,000 without anyone noticing is certainly troubling, but this is a story that can serve as a cautionary tale to other community organizations. What happened to the Pasco downtown group could befall any nonprofit, government agency or business that leaves one person in charge of all its finances.

Goins apparently was given such broad authority that he was able to routinely take money during his two years on the job, and no one caught on until the IRS started making inquiries and too many bills were left unpaid. He was in charge of the agency’s financial affairs, including overseeing bank accounts and payroll, and writing all checks. He admitted that he would move money from one account to another so missing funds would not be noticed.

Goins also told investigators that he intended to pay the money back, but that he “got into quicksand.”

This is often how such thefts start.

Within the last several years we have seen other similar situations. One involved a volunteer with a youth baseball league and another involved a former bookkeeper with Franklin County Cemetery District. No. 2.

Structured accounting policies should be a part of every organization, no matter how big or small. However, it can be especially tough for volunteer associations and nonprofits to manage, and it isn’t unusual for such groups to simply trust a treasurer or director to do the right thing.

To help smaller organizations, especially charities, the Washington Secretary of State’s office has partnered with a relatively young membership group to help board and commissions function.

It is called Washington Nonprofits, and has been in existence for about five years. While the group was set up primarily to help charities, many of its workshops and educational materials can be applied to any group.

Nancy Bacon, Washington Nonprofits director of learning, is anxious to get the word out about what the group offers and the help it can provide to charities and nonprofits looking for better management practices.

For financial issues, the groups offers a program called Finance Unlocked for Nonprofits — or FUN — which is a free resource and can be found online at www.washington.org.

“We are really proud of how it has raised the bar on nonprofit finance education,” Bacon said, and it gives board members a tool to watch on their own or take into a board meeting.

In addition to the web series, Washington Nonprofits also holds workshops throughout the state, and Bacon said she would like to make the Tri-Cities a priority for one of its workshops next year.

But in the meantime, there is one scheduled in Yakima on March 23 and another in Prosser on April 13. These workshops are part of the Boards in Gear program, which covers the responsibilities of a board member, and includes information on accounting practices. Anyone interested in attending should check out the Washington Nonprofits website. This is a great resource that should be utilized.

This story was originally published March 1, 2016 at 5:10 PM with the headline "Theft can happen in any organization, but there’s help."